- Cygnus Gold (CY5) has received firm commitments to undertake a $1.2 million placement
- To raise the funds, more than 9.1 million fully paid ordinary shares will be issued to sophisticated and professional investors at a price of 13 cents each
- Additionally, company Directors have subscribed for $300,000 worth of shares, however, this is subject to shareholder approval
- Cygnus will use the funds for exploration activities at its projects in the south-west, tenement holding expenses and business development opportunities
- Cygnus is down a slight 2.86 per cent on the market and shares are trading for 17 cents each
Cygnus Gold (CY5) has received firm commitments to undertake a $1.2 million placement.
To raise the funds, up to 9,132,692 fully paid ordinary shares will be issued to sophisticated and professional investors at a price of 13 cents each.
This price represents a 24 per cent discount to Cygnus’ 15-day volume weighted average price of 17.1 cents.
As well as the strong support from investors, company Directors collectively subscribed for $300,000 worth of shares, however, this is subject to shareholder approval which will be sought after at Cygnus’ general meeting.
Cygnus will use the funds for exploration activities at its projects in the south-west, tenement holding expenses, business development opportunities, and general working capital.
Shares are expected to settle on August 26.
Cygnus is down a slight 2.86 per cent on the market and shares are trading for 17 cents each at 2:39 pm AEST.